The government has deputed special secretary for internal security in the home ministry UK Bansal as the nodal point to address security concerns of central public sector enterprises (CPSEs) that are setting up projects worth nearly Rs 1,50,000 crore in Naxal-infested areas of the country.

The move is likely to benefit companies such as National Hydroelectric Power Corporation (NHPC), Damodar Valley Corporation (DVC), National Aluminium Company (Nalco) and the Indian Railways, whose projects are affected by Naxal interference.

Implementation of government programmes like Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), work on which is slow due to problems posed by Naxals, would also improve.

Bansal will be responsible to coordinate with CPSEs and address their security problems on a priority basis. ?The special secretary will be the nodal point for CPSEs. He will look at the demands to beef up security at their projects. We may provide Central Industrial Security Force to the specific projects of these companies,? home secretary Gopal K Pillai told FE.

The ministry?s decision is the result of various representations made by CPSEs. The latest meeting was held in June this year between home minister P Chidamabam and Standing Conference of Public Enterprises? chairman Arup Roy Choudhury. ?The ministry?s decision will make the process of providing security more structured and fast. It will be easier now to put across our point,? Choudhury said.

According to Project Implementation Status Report for January-March 2009, prepared by the ministry of statistics and programme implementation-CPSEs are working on projects worth Rs 1,47,000 crore in Jharkhand, Chhattisgarh, Assam, Orissa, Andhra Pradesh, Manipur and Nagaland-main states where Naxals are active. Out of the total, 10 projects have cost over-runs due to law and order problems. One of these is in the coal sector, four in power and five in railway.

Recently, Naxals issued an ultimatum to Nalco pitching for their demands, four months after attacking its Panchpatmali bauxite mines in Koraput, Orissa. They also threatened Bhel engineers for working on the expansion of DVC?s power plant at Chanderpura in Jharkhand, besides affecting NHPC?s Loktak

Downstream Hydro Project in Manipur. Work on RGGVY in Chhattisgarh has also become a casualty to Naxals.

?We are facing problems in implementing the project due to regular threats from naxals. Generally, we take care of our security but in the situation like these we need the government help,? a contractor working on behalf of a CPSE said on the condition of anonymity.